The New Economy Finally Gets Some Respect

Conventional wisdom can be comforting, but it can be suffocating, too. For the past three decades, conventional wisdom has held that the U.S. economy could not grow faster than 2% to 2.5% a year without setting off inflation. This slow-growth view was institutionalized in Washington by the Federal Reserve, propagated in academia by economics departments, and evangelized on Wall Street by forecasters.

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